According to the textbook, government supplies police protection because
A) it is difficult to supply police protection exclusively to people who pay for it.
B) police protection is every citizen's right.
C) police use force, violence, and coercion.
D) the supply of police protection is in the public interest.
E) the value of police protection is greater than its marginal cost.
A
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The entry and exit of firms in a monopolistically competitive market guarantee that
A) firms can earn economic profits in the long run. B) price equals average total cost in the long run. C) marginal revenue equals marginal cost and average total cost is minimized. D) firms can earn economic profits in the short run.
Suppose the euro—yen exchange rate falls while the dollar—yen exchange rate rises. What happens to the price of goods imported into Japan?
A) European goods become more expensive while U.S. goods become cheaper. B) European goods become cheaper while U.S. goods become more expensive. C) Both European and U.S. goods become more expensive. D) Both European and U.S. goods become cheaper.
In a perfectly competitive resource market the Marginal Revenue Product Curve is
A) vertical. B) horizontal. C) downward-sloping. D) upward-sloping.
If the marginal propensity to consume is 0.6, what is the long-run expenditure multiplier?
a. 0.0 b. 2.0 c. 2.5 d. 10.0 e. 1.0